The described scenario is theoretically possible, but can occur only if there is a crash in other currencies or financial markets.
People seems to be quite content with using fiat. Why would they change, except in special cases, like sending money?
What is the impetus for every day use?
If all mined coins are sold (just for the sake of argument), then it results of $526 mil being sold into the system per year.
There are only four funds that are buyers and these are relatively small funds. The only other buyers might be large family offices.
In a personal example, I am a relative enthusiast (I accumulate, mine, etc.), however I don't use bitcoin for much of anything because it seems silly to exchange it for goods (other than miners) at the current super low prices with me putting up quite a lot of cash getting measly btc at the moment. None of my family have used bitcoins for anything, even if they are fully aware of bitcoin from my interest. I am quite sure that this situation is rather typical.
Perhaps, we are too impatient and it will take years/decades for usage to improve, but the last 11 mo has been a general disappointment: too much talk about esoteric usage (Etherium, etc) and too little improvement in day-to-day activities (wallets, security, etc.).